Summary

Description

The Department Store Inventory Price Index is an inventory weighted price index of goods carried by department stores, designed for use in preparing income tax returns by department stores. Group indexes are used by stores employing the Last-In-First-Out (LIFO) Method of Accounting in conjunction with the Retail Inventory method. Treasury Decision No. 5605 (March 4, 1948) expressly permits, in accordance with certain principles laid down in the decision, the use of the Elective Inventory Method by Taxpayers employing the Retail Inventory Method. The Bureau of Labor Statistics (BLS) is responsible for the technical accuracy of the index, but permission to use this index and the way in which it is used in tax returns is solely within the jurisdiction of the Internal Revenue Service.